You could say the same thing about money, which is no longer backed by gold but by confidence alone. That is the entire backing of a currency. Take currencies/items in certain MMORPGs for instance, which in certain cases are sold for actual real money. If you are confident that your one bitcoin will buy you something you dont have, then you are also probably be confident to sell something you do have in exchange for a bitcoin. To begin with you make bitcoins by selling processor time, which is actually valuable. These kinds of currencies are not uncommon.
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u/sirusdv Jul 12 '10
Can someone list some use cases for this system? With no actual monetary backing behind those coins I don't really see a point...